Auto-enrolment fines rise 146%

Fines issued to employers failing to comply with their auto-enrolment responsibilities have more than doubled over the last two years, a report from the Pensions Regulator shows.

In 2017/18, 36,137 fines were issued to employers for not complying with the requirements of auto-enrolment - up from 14,707 fines in 2016/17.

However, the Pensions Regulator says this rise has been in line with an increased number of employers with auto-enrolment responsibilities, and does not indicate a widespread issue of non-compliance.

Since its introduction in 2012, auto-enrolment was introduced over several stages for different sizes of business, so the number of employers required to comply has increased gradually in the years since.

While more than 500,000 employers had declared their compliance with auto-enrolment by 2016/17, this figure rose to 1.1 million in 2017/18.

A spokesperson for the Pensions Regulator said:

"Research carried out into employer awareness and understanding of automatic enrolment shows the vast majority of employers are aware of their ongoing duties, which include record-keeping and maintaining contributions.

"Where an employer does not have expertise in this area, such as a dedicated payroll department, we encourage them to seek help from a professional advisor to ensure they meet their legal duties."

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